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Central Bank of India: Banks should not provide digital currency services under the old law


Concurrent with the issuance of notices and warnings by Indian banks regarding digital currency transactions by citizens, the Central Bank of India issued a statement saying that banks should not provide digital currency services under the old law.

to the the report The Central Bank of India has issued an official statement warning local banks to warn customers against using digital currencies such as Bitcoin.

The statement said Monday that the Bank of India was aware of media reports that some banks had warned their customers about digital currencies by referring to the revoked three-year central bank directive.

The announcement emphasizes that this directive is no longer valid and can be cited:

Such references to the above directive by the supervised banks or institutions are not correct, as this directive was rejected on March 4, 2020 by a written order of the Supreme Court.

The Bank of India notes that the construction of supervised banks and other financial institutions can carry out customer competency assessment processes in relation to anti-money laundering and customer identification standards under the 2002 Anti-Money Laundering Act.

The Bank of India issued a statement in response to media reports that said some of India’s largest banks, such as HDFC and the State Bank of India, had warned their customers about digital currency trading. Some users have also said that HDFC Bank has invoked the Central Bank of India in 2018 to ban digital currency trading. The ban was officially lifted in March 2020 by the Supreme Court of India.

This news adds to the uncertainty surrounding the legal status of digital currency in India. Earlier this year, unnamed sources claimed that the government was planning a total ban on digital currency.

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